Nikola (NKLA) disclosed that Hanwha will promote as much as half its stake within the embattled electric-truck startup. In the meantime, Amazon (AMZN) expanded street testing of Rivian’s electrical vans. Nikola inventory fell.
South Korea’s Hanwha, which has a 5.65% stake, intends to promote as much as 11.1 million shares of Nikola inventory, value about $180 million as of Wednesday’s closing worth, based on regulatory filings.
“Hanwha stays an necessary strategic associate and continues to play an energetic position on Nikola’s board of administrators,” Nikola stated in a press release late Wednesday.
In 2018, Hanwha took a stake within the maker of electrical semi-trucks and is a provider of photo voltaic panels for Nikola’s hydrogen-fueling community. However Hanwha has seen Nikola inventory practically halve in worth because it got here public final 12 months, after a short-seller accused the Phoenix-based firm of fraud.
The Korean conglomerate’s transfer comes after auto-parts large Robert Bosch additionally bought Nikola inventory in November, paring its stake to 4.9% from 6.4% by promoting about 4 million shares.
That very same month, Normal Motors (GM) deserted plans to take an fairness stake in Nikola and grow to be a producing associate on an electrical pickup truck. Nikola nonetheless plans to construct each all-electric and fuel-cell automobiles for long-haul trucking.
Shares misplaced 9.8% to 14.78 in Thursday’s stock market trading. Nikola inventory stays beneath the 50-day line and its RS line exhibits vital lag. Amazon inventory sank 3.4%, hitting resistance at its converged 50- and 200-day strains. Amongst different makers of electrical vans, Lordstown Motors (RIDE) dived 14% after disclosing an SEC probe into short-seller claims, and Tesla (TSLA) reversed 6.9%.
In the meantime, Amazon is testing electrical supply vans from Rivian on the streets of San Francisco, increasing a testing program that started in Los Angeles final month. It should additional develop this system to 14 cities this 12 months.
In 2019, Amazon agreed to purchase 100,000 custom-built, last-mile supply vans from Rivian. Ultimately, the e-commerce large seeks to have its total supply fleet run on clear vitality. For the reason that begin of 2019, huge traders have poured roughly $8 billion into Rivian, together with Amazon’s Local weather Pledge Fund in a January 2021 funding spherical.
Rivian’s launch automobiles, the R1T truck and R1S SUV, are attributable to arrive as quickly as this summer season. The all-electric automobiles boast spectacular specs and goal off-road adventurers.
Discover Aparna Narayanan on Twitter at @IBD_Aparna.
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